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BigorU [14]
3 years ago
15

On January 1, Butte Company's Valuation Allowance for Trading Investments account has a debit balance of $23,200. On December 31

, the cost of the trading securities portfolio was $80,000. The fair value was $98,000. Which of the following would Butte report on the income statement for the current year
A. an unrealized loss on trading investments, $18,000

B. an unrealized gain on trading investments, $18,000

C. an unrealized gain on trading investments, $5,200

D. an unrealized loss on trading investments, $5,200
Business
1 answer:
drek231 [11]3 years ago
4 0

Answer:D. An unrealized loss on trading investments, $5,200.

Explanation:A valuation allowance contra-account to a deferred tax asset. It is also a reserve that is used to offset part or all of the value of a deferred tax asset. It is very important and necessary for a financial analyst to always scrutinize

and review the valuation allowances of a company as it may be used to manipulate earnings of a company for their own gains.

The income statement of Butte will be report as follows

Fair value-liabilities(debit balance and cost of the trading portfolio)

=$98,000-23,200-$80,000

=-$5,200

THE UNREALISED LOSS ON TRADING INVESTMENT IS $5200.

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Answer:

The correct answer is letter "A": Those who are unwilling or unable to pay for the good do not obtain its benefits.

Explanation:

The excludability feature of goods does not allow individuals to have access to them without having paid for them. Thus, non-excludable goods are those that no one cannot prevent its use. <em>Private goods</em> (clothing, vehicles, houses) are excludable but they are also considered rival goods since when one person uses it another individual cannot consume the goods.

4 0
2 years ago
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For accounting errors, which of the below sentences is true?
Monica [59]

Answer:

The correct option is C

Explanation:

Accounting error is the type of error in the accounting which was not done intentionally but when spotted, the error need to be fixed immediately. And when there is no immediate solution for the error, an investigation is conducted in order to find out who caused the error.

The statement which is true is that they represent the fraud which usually result in the legal action to be taken.

7 0
3 years ago
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furnitur
morpeh [17]

Answer:

Landing Service

1. Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.  

e. absolute

2. Refer to Landing Service. What type of tax has the Brazilian government imposed on the company?

a. Import duty

Explanation:

Landing Service enjoys absolute advantage with its ability to produce furniture more efficiently than any other company in the world.  It implies that Landing Service can produce furniture with lesser input resources than other furniture companies in the world.

Import duty, in this scenario, refers to the tax imposed by the Brazilian government on Landing Service's furniture. This tax increases the price of the furniture for the Brazilian importers and consumers.

3 0
2 years ago
The marginal benefit Colin gets from eating a fourth slice of pizza isA. the total benefit Colin gets from eating four slices of
julia-pushkina [17]

Answer:

A) the total benefit Colin gets from eating four slices of pizza minus the total benefit Colin gets from eating three slices of pizza.

Explanation:

Marginal benefit refers to the utility received from doing something one more time. When businesses want to measure marginal benefits, they simply measure the extra revenue generated by selling one more unit, that is why it is referred to as marginal revenue. But when individuals get a marginal benefit, we tend to use a unit called util, and the marginal benefit is how many utils do we get from consuming an extra unit of product.

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3 years ago
While the societal marketing concept considers the future welfare of consumers and the sustainable marketing concept considers f
shepuryov [24]

Answer:

False

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In the statement strategic planning is said to consider future welfare of customers and future of the company. This is not true, as strategic planning is focused on only the future of the company. It is the process by which a company develops long-term goals and plans to achieve them.

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Soceital marketing concept focuses on the future welfare of the consumer.

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